MENOMONEE FALLS, Wis. -- (Business Wire)
Magnetek, Inc. (“Magnetek” or “the Company”) (NASDAQ: MAG) today
announced that it expects to report a non-cash pre-tax asset impairment
charge of approximately $1 million in its fourth quarter operating
results. The Company has determined that the value of its fixed assets
used in the manufacture and test of renewable energy inverters is
impaired, due to current incoming order and sales levels of the
Company’s inverters into renewable energy markets, and significantly
diminished prospects for future sales of inverters. The impairment
charge reduces the net book value of the Company’s renewable energy
fixed assets to zero.
Commenting on the impairment charge, Peter McCormick, Magnetek’s
president and chief executive officer, said, “Renewable energy market
conditions have been challenging throughout fiscal 2012, and we
responded to the downturn earlier in the year by reducing our cost
structure in that part of our business. While we plan to continue to
provide parts and service for our existing installed base of inverters,
we don’t intend to pursue new business opportunities in the renewable
energy space. We firmly believe we have sustainable competitive
advantages and better growth opportunities in our traditional served
markets, primarily in material handling and other motion control
markets. As a result, we intend to focus our future investments in those
areas,” concluded Mr. McCormick.
About Magnetek, Inc.
Magnetek, Inc. provides digital power and motion control systems used in
overhead material handling, elevator, and mining applications. The
Company is North America’s largest supplier of digital drive systems for
industrial cranes, hoists, and monorails. Magnetek provides Energy
Engineered® drives, radio remote controls, motors, and
braking and collision avoidance subsystems to North America’s foremost
overhead material handling crane builders. The Company is also the
world’s largest independent builder of highly integrated digital motion
control systems for high-rise, high-speed elevators and is a leading
independent supplier of digital motion control systems for underground
coal mining applications. Magnetek is headquartered in Menomonee Falls,
Wis., in the greater Milwaukee area and operates manufacturing
facilities in Pittsburgh, Pa., and Bridgeville, Pa., as well as
Special Note Regarding Online Availability of Magnetek Releases and
All Magnetek financial news releases and filings with the Security
and Exchange Commission (“SEC”) are posted to the Magnetek website.
Material and financial releases as well as SEC filings are available at www.magnetek.com.
Automatic email alerts for these postings are available from the
Investor Relations section of the site. Corporate and general releases
as well as product information are also available at www.magnetek.com.
Special Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on the Company's expectations and
are subject to risks and uncertainties that cannot be predicted or
quantified and are beyond the Company's control.Future events
and actual results could differ materially from those set forth in,
contemplated by, or underlying these forward-looking statements. These
include, but are not limited to, economic conditions in general,
business conditions in material handling, elevator, mining, and
alternative energy markets, operating conditions, competitive factors
such as pricing and technology, risks associated with acquisitions and
divestitures, legal proceedings and the risk that the Company’s ultimate
costs of doing business exceed present estimates.Other factors
that could cause actual results to differ materially from expectations
are described in the Company's Form 10-K and other reports filed with
the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934.
Vice President, Chief Financial
Source: Magnetek, Inc.
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